The Indian Railway Finance Corporation (IRFC) is a crucial financial arm of the Indian Railways, established in 1986. It specializes in raising funds for the railways from national and international markets to finance the acquisition of rolling stock and infrastructure development. Operating under the Ministry of Railways, Government of India, IRFC’s funding helps procure locomotives, coaches, and wagons and financing projects for track laying, electrification, and station development. Its operations involve leasing assets back to the railways, making it an essential entity supporting the expansion and modernization of India’s railway network while offering attractive investment opportunities in the infrastructure sector.
Based on the above strength of IRFC, we discuss IRFC share price target prediction for 2025 , 2026, 2028, 2030, and 2035.
Overview of The Indian Railway Finance Corporation (IRFC):
IRFC’s share price is ₹153.70 as of February 9, 2024. A PSU headquartered in New Delhi, it finances assets for Indian Railways. It’s a large-cap company with a market cap of ₹2,00,863 Cr. The P/E ratio is 33.26, and the P/B ratio is 4.16. Promoters, led by the President of India, hold 86.36% equity with no pledged shares. IRFC reported a net profit of ₹6,038 Cr (TTM) and an ROE of 12.67%.
| Name | Indian Railway Finance Corporation Limited |
| Incorporation | 1986 |
| Headquarters | New Delhi, India |
| Chairman & Managing Director | Shelly Verma |
| Business Model | Non-banking financial (Infrastructure Finance Company) |
| Core Business | Financing the acquisition/creation of assets leased to Indian Railways |
| Market Cap | ₹2,00,863 Cr (as of February 9, 2024) |
| Share Price (As of Feb 2024) | ₹153.70 |
| P/B Ratio | 4.16 times (as of February 9, 2024) |
| Promoter | Holding President of India through the Ministry of Railways owns 86.36% |
| Net Profit | ₹6,038 Cr (TTM) |
| ROE | 12.67% |
| Website | https://www.irfc.co.in) |
IRFC share price target prediction 2025:
IRFC’s share price is predicted to show robust growth, with targets for 2025 ranging between ₹329.76 to ₹357.80 and even higher at ₹464.31, according to different analyses. These optimistic outlooks are based on IRFC’s strong fundamentals, its pivotal role in financing the Indian Railways’ expansion, and the sector’s growth potential. However, investors should also know the risks, including regulatory changes and market volatility.
| Year | Share Price Target |
| 2025 | 357 |
IRFC share price target prediction 2026:
For 2026, IRFC’s share price target is predicted to be between ₹408.88 and ₹477.11. These projections are based on the company’s strategic role in financing Indian Railways’ development and growth potential, balanced against market and regulatory risks. (IRFC share price target prediction for 2025)
| Year | Share Price Target |
| 2026 | 477 |
IRFC share price target prediction 2028:
By 2028, IRFC’s share price is predicted to range between ₹586.08 and ₹648.31. These forecasts highlight the company’s growth prospects, backed by its involvement in financing the Indian Railways’ development projects.
| Year | Share Price Target |
| 2028 | 648 |
IRFC share price target prediction 2030:
IRFC’s share price target for 2030 is forecasted to range from ₹615.46 to ₹692.07, reflecting optimism about its growth potential and role in financing the Indian Railways’ expansion.
| Year | Share Price Target |
| 2030 | 692 |
IRFC share price target prediction 2035:
By 2035, IRFC share price predictions suggest a significant increase, with estimates indicating a potential range up to approximately ₹2,151.27. These optimistic forecasts reflect the company’s strong fundamentals and key role in supporting the Indian Railways’ growth and modernization efforts. Investors should consider these long-term projections cautiously, considering market dynamics and external factors.
| Year | Share Price Target |
| 2035 | 2151 |
IRFC share price target prediction for 2025 to 2035:
| Year | Share Price Target |
| 2025 | 357 |
| 2026 | 477 |
| 2028 | 648 |
| 2030 | 692 |
| 2035 | 2151 |
FAQ:
Q. How does IRFC raise funds?
A. IRFC raises funds from domestic and overseas markets through the issuance of bonds, term loans from banks and financial institutions, and external commercial borrowings, among other instruments.
Q. What does IRFC finance?
A. IRFC finances the acquisition of rolling stock assets, which include powered and unpowered vehicles, for example, locomotives, coaches, wagons, trucks, flats, electric multiple units, containers, cranes, trollies of all kinds and other items of rolling stock components, leased to the Indian Railways.
Q. What is the ownership structure of IRFC?
A. IRFC is under the ownership of the Government of India through the Ministry of Railways. As of the last update, the President of India, acting through the Ministry of Railway, is the major promoter.
Q. What are the benefits of investing in IRFC?
A. Investors consider IRFC a stable investment due to its backing by the Government of India and its critical role in supporting the Indian Railways’ infrastructure. It offers investors a way to contribute and benefit from the Indian Railways’ growth.
Q. Are IRFC bonds a good investment?
A. IRFC bonds are often considered a safe investment because the government backs them. They typically offer a fixed interest rate,and give steady returns.
Conclusion:
IRFC represents a unique investment opportunity closely tied to the growth and modernization of the Indian Railways. While its future share price is subject to market conditions and economic factors, the corporation’s strategic role in financing rail infrastructure projects positions it well for growth. Investors considering IRFC should monitor government policies related to railways, along with broader economic indicators. (IRFC share price target prediction for 2025)
Disclaimer: This article is for informational purpose only and should not be considered financial advice. Share price predictions are speculative and involve risk. Investors should conduct their research or consult a financial advisor before making investment decisions. The information provided here is based on data available as of the last update and may change over time.
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